Entry method using MACDHistogramCrossover

[jezzer47]

I have been lurking this site for a while and have found a bunch of helpful things. I want to give back a little.

So this is not really a strategy but more of a complementary piece to the puzzle. It helps me define optimal entry points.

I use the macdhistogramcrossover indicator that is already built into the thinkorswim database.

My settings are :

fast length: 3

Slow length: 6

macd length: 9

set to exponential for the average.

I place two of them on the chart 1 for up signal 1 for the down signal.

*I try to avoid entries on very large bars. I either want to enter on a normal size to smaller candle or opposite color (green for down arrow, red for up arrow)

chart is just an 18 ema with heiken ashi bars. looking for trend continuation or reversals

 

[markos]

@jezzer47 very nice idea, thank you for sharing. Could you add to your post by sharing your chart, and list the timeframe chart you generally use and do you day, swing, or longer-term trade?

 

[jezzer47]

@jezzer47 very nice idea, thank you for sharing. Could you add to your post by sharing your chart, and list the timeframe chart you generally use and do you day, swing, or longer-term trade?

NP. I will post a chart later, but will elaborate now.

I guess you can call it trend trading as I only follow the current trend. I use what is called a bounce or sling shot method. Depending on what instrument is traded is how I use timeframe. This can work on any and all timeframes but I will add the higher the time frame the greater the accuracy and bigger the move.

I use an 18 or 20 ema and a Macd to figure out direction. My macd setting is 50/100/9 as it gives me a broader view of momentum up or down.

But as I said the point of the post was for timing entries. I believe no matter what strategy is used once the macd of 3/6/9 crosses in either direction should be a good entry point as it is signaling momentum on a micro level (short term) basis.

will post chart later.

 

[Shaishen]

Interesting concept - aren't we always looking for some kind of confirmation of our trade idea. Our brains are so wired to see a feel good arrow pointing towards the treasure. I overlaid your idea with impulse and TTM scalper alert. They line up pretty ok - I like impulse on a 1hr to show trend strength for 5 min trading.
"I try to avoid entries on very large bars. " interesting observation - by the time you get a signal on a large bar that large bar has formed already - so I guess waiting for a pullback after that large bar, or as you said just enter on a normal sized bar.
Sometimes I set ATR to 1 and histogram. Renders a good visual (at least for me) what a normal bar should look like and how frequent large bars are formed.
S

 

[DDW]

This is a really great tool, thanks for sharing it!